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Nqobizitha Dhlamini
GOVERNMENT has implemented a Small to Medium Enterprise infrastructural policy meant to ease the challenges faced by SMEs in the running of their businesses, an official said.
SMEs Minister Sithembiso Nyoni said the Government had introduced this policy to respond to the pleas by SMEs.
In recent reports, SMEs have appealed to the Government to create a conducive work environment for them as they face problems pertaining to rent and utility costs that hinder them from realising maximum profits.
“The problems faced by the SMEs are my greatest concern as their minister but at the end of the day it is not only the Government that is involved in the decision making but the businesspeople as most of the properties are private owned.
The Government has implemented the SME infrastructural policy which has been submitted to the local authorities requesting land to be set aside for the development of infrastructure specifically meant for the SMEs,” she said.
Minister Nyoni said the non-availability of affordable factories to rent was also a factor that stood as an obstacle in SME development.
“It would be much easier and more profitable for small-scale businesspeople to have access to affordable factories to rent where they can manufacture their goods. Most of the factories available are accompanied by high rentals therefore posing as an unrealistic fantasy for the small-scale businesspeople,” she said.
Minister Nyoni also highlighted that the issue of high electricity tariffs was not only a hindrance to the SMEs but industry as a whole. She added that they were negotiating with the Ministry of Energy to avail to small-scale businesspeople affordable tariffs distinct from the domestic tariffs so that they could be able to make profit.
Confederation of Zimbabwe Industries president, Mr Charles Msipa, expressed optimism for the results which will be realised through the policy.
“Countries that have succeeded in the SMEs sector have prioritised the provision of infrastructure to these small-scale businesspeople hence we ought to borrow that example to ensure the development of the SMEs.
These will not only help the SMEs but the officials as well to make plans and changes that are specifically meant to benefit the small-scale businesspeople,” he said.
Mr Msipa said the initiative to provide the SMEs with facilities would help the sector grow by improving their accessibility to customers as they would locate them in one area.
By such a development, the SMEs could then fully participate in the payment of taxes for the betterment and development of our nation as a whole,” he said.
In an interview, the Bulawayo mayor, Clr Martin Moyo, said the application was yet to go through the necessary stages before the full implementation of the policy.
“There is a process that has to be followed once an application is submitted to the council and there still has to be planning and land selection to be conducted by the relevant parties involved.
We as the council otherwise complement this initiative,” he said.
Clr Moyo urged the small-scale businesspeople to desist from crowding themselves in the CBD but make use of locations that are situated on the outskirts of the CBD.
“The council has infrastructure at Kelvin North which has affordable rentals for the sole purpose of sustainability but not many people are interested in it due to the fact that it is outside town.
“It’s high time they embraced the fact that there is very little space available in the CBD and they ought to be innovative regardless of their point of business conduct,” he said.
A survey conducted by Sunday Business revealed that small-scale businesspeople were excited with this development as they said it would go a long way in aiding the growth of their businesses.
Mr Ocean Mpofu, a small-scale businessperson in the city said if successful, this initiative would relieve many small-scale businesspeople from debt.
“These high rentals and utility bills leave us owing the property owners money and as it accumulates over some time it becomes difficult to pay resulting in the closing of the businesses.
“Not only are the tariffs too expensive for business but the power outages by the Zimbabwe Electricity Supply Authority disturb business,” said Mr Mpofu.
Meanwhile, Finance and Economic Development Minister Patrick Chinamasa supported the notion that SMEs are playing a critical role in the economy hence they require support.
“SMEs are increasingly becoming a major driver to economic growth and development, thereby enhancing employment opportunities and poverty alleviation.
“Government endeavours to create an enabling environment through incentives that support linkages with established companies,” he said.
SMEs play a key and strategic role in revitalising the economy; it is universally acknowledged that they are effective instruments of employment creation and economic growth which ultimately lead to poverty alleviation for the entrepreneurs themselves and their employees.
Online Reporter